Addleman Corporation Has an Activity-Based Costing System with Three Activity

question 76

Multiple Choice

Addleman Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Distribution of Resource Consumption Across Activity Cost Pools:
Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins.
Sales and Direct Cost Data:
How much overhead cost is allocated to the Supervising activity cost pool under activity-based costing?

• A) $7,300
• B) $51,700
• C) $7,500
• D) $200

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Definitions:

Depolarization

A decrease in the electrical charge difference across a cell's plasma membrane, often leading to the initiation of an action potential in neurons.

Sodium Ions

Charged particles of sodium (Na+), playing crucial roles in physiological processes such as nerve impulse transmission and muscle contraction.

Axon

An axon is a long, slender projection of a nerve cell, or neuron, that typically conducts electrical impulses away from the neuron's cell body.

Neural Impulses

Electrical signals that transmit information along neurons, facilitating communication within the nervous system.